A law and economics perspective on terrorism

Nuno Garoupa, Jonathan Klick, Francesco Parisi

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


This paper reviews the existing law and economics literature on crime, noting where various models might apply to the terror context. Specifically, it focuses on two strands of the literature, deterrence and incapacitation. It considers anti-terror measures enacted by different countries, highlighting how the details of the laws correspond to the insights from economic models of crime. In conclusion, the paper proposes an efficient sorting mechanism in which individuals will be provided with incentives to reveal their type to law enforcement authorities.

Original languageEnglish
Pages (from-to)147-168
Number of pages22
JournalPublic Choice
Issue number1-2
Publication statusPublished - 1 Jul 2006


  • Basic crime model
  • Communal liability
  • Deterrence
  • Incapacitation
  • Organized crime
  • Penalty enhancements
  • Terrorism


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